ABSTRACT
Adam Smith had pointed out that competition is beneficial when it corresponds to 'laws of justice'. Free competition is similar to freedom of contract. Speaking about competition is speaking about freedom of contract. Competition is imperfect on the political market because the electoral process consists in determining who will be the beneficiaries of the state monopoly. Competition between states may take various forms that are more or less close to what constitutes competition in other markets, those of which it is generally said that they are 'competitive'. A certain degree of law competition already exists as far as individuals are free to move or to move resources from one country to another, that is, from a legal space to another. Intergovernmental competition is more efficient as states are smaller, and this is why one should even be in favour of competition between city councils.
